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10.1  |  Reconstruction: March 2003 to June 2004
369.  Ministers agreed that DFID should discuss with the MOD, the Permanent Joint
Headquarters (PJHQ), 1 (UK) Div, ORHA and the IPU “measures to achieve a step
change in rehabilitation in the South”, before discussing funding with the Treasury
and presenting a plan to the AHMGIR on 22 May.
370.  On 16 May, Ambassador Bremer issued CPA Regulation No.1.207 It stated:
“The CPA shall exercise powers of government temporarily in order to provide for
the effective administration of Iraq during the period of transitional administration,
to restore conditions of security and stability, to create conditions in which the Iraqi
people can freely determine their own political future, including by advancing efforts
to restore and establish national and local institutions for representative governance
and facilitating economic recovery and sustainable reconstruction and development.”
371.  The DFID team in Basra sent DFID a stock-take of the situation in the South on
19 May.208 ORHA(South) was suffering from the lack of policy guidance, support and
specialist staffing from ORHA(Baghdad). Danish staff in ORHA(South) had received
US$500,000 from the Danish Government; that appeared to be all of ORHA(South)’s
“immediately accessible” funding. ORHA(South) barely had enough staff to cover the
most urgent tasks, such as the payment of salaries; more support was required. There
was a risk that neglect by ORHA(South) in these initial months would allow “alternative
structures” to emerge.
372.  The DFID team also reported that “many military units” had said that they did not
have the capacity to implement QIPs to the extent that they would like. 1 (UK) Div was
aware of the “disconnect” between their capacity and the need to implement £29m worth
of QIPs. The DFID team recommended that military capacity should be augmented.
373.  Sir David Manning visited Baghdad and Basra for the first time from 20 to 21 May.
In his report to Mr Blair, he echoed Mr Sawers’ assessment that Baghdad was key,
observing that Basra was “way ahead” of Baghdad. Joining the growing chorus of critics
of ORHA, Sir David described it as a “shambles”.209
374.  Sir David described Ambassador Bremer as “impressive”. One way of helping him
would be to get DFID:
“… properly and energetically engaged. (There is a residue of bitterness about
their lack of involvement: they have committed few people and have apparently just
completed their third independent reconnaissance about security for staff before
deploying more people). Valerie [Amos] will make things change. I hope she will get
experts to ORHA very fast.”
207  Coalition Provisional Authority, Regulation Number 1, 16 May 2003, The Coalition Provisional Authority.
208  Minute DFID [junior officials] to DFID [junior official], 19 May 2003, ‘DFID Basrah: Issues Paper’.
209  Letter Manning to Prime Minister, 22 May 2003, ‘Iraq: Visit to Baghdad and Basra’.
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